1. Managing Manulife’s Innovation and Transformation Agenda
Harry Pickett
SVP and Chief Technology Officer
Global Information Services
January 31, 2011

2. AGENDA
Manulife “Who are we?”
Service Delivery Complexity
Global Information Services Strategy Overview
Role of Global IS Governance
Business Value Creation through Enterprise Architecture
Information Technology Landscape Changes and Drivers
Three Current Case Challenges Underway
Q&A

3. Manulife is a leading Canadian-based Global Financial Services Group
Established in 1887
A Federated Business Model that operates in Canada and Asia through Manulife Financial and in the United States primarily through John Hancock
Serving millions of customers in 22 countries and territories around the world
More than 20,000 employees and thousands of distribution partners
Receiver of numerous awards and recognition for our customer service, our products, our innovation and people
Check us out at

4. We deliver our services through a complex global service delivery model
Manulife’s Infrastructure and Operations data centre services are managed by over 900 employees in 6 major centers
…with services delivered by 5 major vendors from 10 core centers
Manulife’s Applications Services are managed by 1,865 employees in 6 major centers
…with development and support services delivered by over 11 vendors in 12 centers
…with voice and data services delivered by 4 strategic telecommunications carriers

5. Our goal is to deliver an exceptional client experience at the lowest possible cost
= Manulife I/O Sites
= Vendor I/O Sites
= Manulife Applications Centres
= Vendor Application Centres
= Voice & Data Services
And we deliver these services from major centres around the world … in this case our infrastructure service teams total nearly thousand located in 5 centres … 5

6. Technology / Infrastructure
Understanding the business strategy is the key enabler for delivery of successful business processes, applications and infrastructure and to set the innovation and transformation agenda
Globally integrated workforce
Highly collaborative workplace
Maximize value of information
Continual pursuit of Operational Process Excellence
Business Processes
Global application services delivery model
“State of the art “ standard tools & methods across all divisions
Leverage competencies from across the company
Examples of world class applications in production
Tight alignment of operations and application management
Applications
From my perspective I start by looking at the Information Service business from 3 platforms ….
First there is the infrastructure …. (comment on driving towards a utility model)
Then there is the application space … MAXIMIZE our spend in AD and minimize the spend in AS
And finally there are the actual business processes … this is the only reason why IS exists within an FI … to enable business processes ..
Global infrastructure service delivery model
Highly robust and secure
Multi-vendor delivery of “utility-like” services
Seamless end user connectivity
Consistent Service Management discipline across the enterprise
Technology / Infrastructure

7. We use our Global IS Governance Structure to set the priorities, execute the staff work and sanction decisions
Global Information Services Executive Committee (GISEC)
(Meets Monthly)
Architecture Review Board
(Meets Monthly)
4 Global Information Services Governance Councils
(Meets Monthly)
12 Standing Working Groups
(Meets Bi-Weekly)
Task Forces
(Meets as Required)
Global Information Services Leadership Committee (GISLC)
(Meets Every Four Months)

8. We run the Gauntlet in most aspects of our innovation and transformation journey
Driving the necessary changes has not been easy due to the Federated nature of our organization

9. Requirements need to be articulated in language the business understands to secure the necessary funding
Common standards & processes
Governance
Shared services
Efficiency & Risk Management
Enterprise Architecture
Outcomes
Agility and Faster Time to Market
Faster time to market, business agility, better preparedness for acquisitions & mergers integration, better visibility through business process optimization for critical applications
Increased IT Operational Excellence
Obtain efficiencies, reduce complexity, cost reduction, consolidation, rationalization and intelligent integration. Optimization of technology and applications architecture. architect holistic business and technology solutions, leverage shared services, reuse common interfaces and processes.
Predictable Risk and Business Change Management
Reducing the risk of making business application and IT infrastructure changes, by adopting best practices, standards and building a map of application dependencies
A more efficient IT operation:
Lower software development, support, and maintenance costs
Increased portability of applications & reuse
Improved interoperability and easier system and network management
Improved ability to address critical enterprise-wide issues like security
Easier upgrade and exchange of system components
Better return on existing investment, reduced risk for future investment:
Reduced complexity in IT infrastructure
Maximum return on investment in existing IT infrastructure
The flexibility to make, buy, or out-source IT solutions
Reduced risk overall in new investment, and the costs of IT ownership
Faster, simpler, and cheaper procurement:
Buying decisions are simpler, because the information governing procurement is readily available in a coherent plan.
The procurement process is faster - maximizing procurement speed and flexibility without sacrificing architectural coherence.
The ability to procure heterogeneous, multi-vendor open systems. 9

10. Risk/Change Management
We take complex projects/programs and translate them into business value explanations
Projects/Programs
Business Value
Agility
OPS Excellence
Risk/Change Management
Active Directory (ID & Access Management)
Reduces Complexity
Reduces Audit Exposure
Global International Network GNO
Easy to Expand
Asset Optimization
Network Redundancy & Improved DR
Desktop Virtualization
Faster Provisioning
Enhanced DR/BCP & Security
IT Service Maturity Program
Obtain Efficiencies in IT Operations
Best Practices Adoption
Global Data Center Strategy (Project Owl + Phoenix + Workday)
M & A Enabler
Technology Optimization
Adoption of Standards
Enterprise Storage Strategy +
Rationalizations
Improved Access to Data & Information
Decrease Cost of Ownership
Reduce Compliance Problems
Enterprise Messaging &
Collaboration
Standardized Environment
Improved User Productivity
Best Practices & Standards 10

11. Technology is changing at a rapid pace, how we embrace and harmonize the impacts is key to our innovation and transformation agenda
“Flat World”
Internet
Web 2.0
Social Networking
Business Evolution
Empowered Users
Commoditization of IT
Ops-IT Convergence
Technology Shifts
Mobile Technology
Cloud Computing
Virtualization 11

12. reductions in IT budgets need for efficiency, effectiveness
Understanding what is driving these shifts helps us jointly prioritize our technology agenda to support the business
Business Drivers
Cultural Drivers
Technology Drivers
economic downturn
reductions in IT budgets
need for efficiency, effectiveness
retirement risk
undocumented legacy knowledge
transition from Gen X to Gen Y
rich mobile devices
cloud computing
advancements in architectures and
associated development languages

13. How familiar does this look in your respective organization?13

14. Development Product & Process
Manulife Financial has adopted a transformation model to execute our application modernization and consolidation strategy
New Product Development
Operations Efficiency / Straight-through Processing
Distribution
Accelerated Speed-to-Market
Elimination of low-value applications
Reduced Application Support Costs
I&O Reductions
Software Licensing Savings
Modern Environments for strategic applications
Upgrades / Platform Currency
Replatforming, Rehosting, Decommissioning
Leveraging Application architectures / tools
Metrics
Infrastructure Outsourcing
Best-in-class processes (ITIL)
Global Resourcing
Development Product & Process
Improvements
Application
Modernization
Consolidation
Operational
Effectiveness
Savings Reinvested
Structure of documents:
Business Overview
Current View
Application Environment
Financials
Workforce Demographics
Strategic Initiatives for 2010 – 2012
Future State
Key Metrics
Workforce Mix
Focus was on Application approaches (ie. Replace, Consolidation, Modernization, Outsourcing) required to support the Business MTO and the use of Outsourced resources to facilitate the delivery of the I.S. Strategy.
Need to be updated by NOV 15th – Need to Align with MTO’s 14 14

15. Business analytics and intelligence is a hot topic on our business and IS strategic agenda, tackling this issue is a complex task
Immature Data Governance
Struggling to meet Business Information Needs
Mixed levels of business engagement in Data Management
Limited line of sight to Data Asset Inventory
Data Management Efficiency Opportunities
Various Levels of Data Management Understanding
Inconsistent or Informal Data Management Practices

16. Establishment of the foundational pre-requisites is how we are approaching our data management efforts
Business Information Needs
More formal understanding of the business strategic information needs is required
Need to help the business transition from Data Hunter to Information Consumer
Current Capabilities
Business and IT are engaged and understand the need for better data management practices
Need to better understand their current capabilities (roles, responsibilities, practices and disciplines)
Education and Communication
General awareness of Data Management concepts and best practices
Teams are looking for more education and awareness of DM efforts in the Business and IT
Roles and Responsibilities
Several efforts are aligned with industry best practices
Need to be reinforced with sustainable data management capabilities
Leverage and Governance
Many common challenges and opportunities to drive increase value and reduce costs
Need formalized practices supported by a common data governance model
Use examples – Business Information Needs, Architecture practices, Data Quality Practices, Data Governance 16 16

17. Title
Month Year
The Digital Universe Is Growing Faster than Global IT Spending & Staffing
Source: IDC.
70%
85%
Of the digital universe
will be created by individuals
Of the digital universe will be the responsibility of organizations to manage and secure
CAGR (2008 thru 2012)
Digital Universe
WW IT Spending
WW IT Staffing
51% 2% 1%
But over the same time period, the next four years, while the digital universe grows by a factor of five, total IT spending worldwide will only grow by a factor of 1.2, and IT staffing by a factor of 1.1.
Source: IDC Digital Universe White Paper, May 2010 17

18. Better management of our data growth and storage requirements is also a key focus area for us
Explosion of multiple new data streams
Virtualization / Cloud / Social Media / Digital Everything
Next Gen Business Intelligence and TNT – The Next Thing
Growth demands storing more for less
Deduplication, compression and thin provisioning
Converged connectivity and “acceleration”
“Blurring” of Memory and “Storage” uses
Widening system and HDD performance gap
Flash memory for extended cache and high performance storage tiers (solid state drives)
Smarter data placement – blocks and files
Storage as a Service – increased SLA demand
Availability/Recoverability – always on Business agility for structured and unstructured data
Security, Encryption, Compliance and Governance built in and leveraged where required
Can you afford
petabyte scale
… and beyond ?
Cost of Storage
Not a long time
Big Data Explosion – very large digital assets (i.e. large files, traditional office worker files growing, video, etc) – fyi - TNT – “The Next Thing” –the next unknown
Exponential – don’t underestimate what exponential growth really means --- need to store more for less with compression, deduplicating backup AND live data so only unique data is stored….thin provisioning such that only used storage is consumed (no more allocation inefficiencies!)
Instant Access to larger and smaller Data sets
– business users now expect rapid access to information contained in very large data sets, i.e. BI and DW. Example being marketing users expecting instant reporting from a BI database containing a new marketing program
with larger disk drives, the access to data density ratio worsens – drives aren’t getting faster with increase capacity (can still only do <200iops per spindle), yet many applications i/o intense such that spindle performance becoming an issue --- SSD or Flash provides 100x performance 100k iops --- so system design is evolving to larger L3 cache and bringing performance storage to Flash/SSD as Tier 0
S torage as a Service – aligned with IT as a Service, business users will expect to directly consume storage assets in a self-provisioned manner with little to no involvement from IT and they will expect these resources to be:
-high performance
-on demand and elastic (grow and shrink)
-inexpensive
-always on
-ubiquitous access 18 18

19. We have adopted an Enterprise Storage Strategy to better manage our growth and contain cost
Centralize & consolidate to leveraged economies of scale
SAN and NAS to leverage larger storage pools where appropriate
Policy based automation to reduce operational efforts
Storage tiers to contain costs of growth
Non-prod vs Prod split into mission critical vs non
Align storage arrays to business SLA – enterprise vs mid-range
Thin provisioning and data dedupe
Tier Data Protection to remove contention & enable future DR
Archive to contain future growth – & files
Best of Breed while leveraging past investments as much as possible
Dual vendor strategy
Asset lifecycle strategy to reduce capital expenditures yet align procurement timeframes 19

20. The emerging challenge, collaboration and communication is now centered around people and is device agnostic
Business Driver
Seamless and secure access to the people and information you need, whenever and wherever you are.
Use examples – Business Information Needs, Architecture practices, Data Quality Practices, Data Governance
Technology Enablers
Intranet, Internet, Social Networks, Cloud Computing, Mobile Devices, Messaging, Web/Video Conferencing, Unified Communications …. 20 20

21. Questions